Quote from Savings Beagle on July 16, 2020, 4:30 pm

Update February 2022: As a result of economic conditions in the U.S., and more importantly, the Federal Reserve Bank communicating its plan to move toward normalizing interest rates, the ultra-low mortgage rates are likely done.  Who knows what might happen in the coming years, though.

Still, some of the information below may remain useful in certain circumstances.

According to Freddie Mac, the Federal Home Loan Mortgage Corporation, the average rate on the 30-year fixed rate mortgage has dropped to the lowest levels in the 50 years of record keeping.

The average rate of the 30-year fixed is 2.98% as of July 16, 2020.

Rates, obviously, can change – both up and down – so the actual rate may be different at the time you read this.

However, the downward trend has been in place for a while now.

And while there are definite downsides to the Federal Reserve Bank’s low to zero rate policies, the low mortgage rates we’re seeing, for consumers needing financing, are a positive without a doubt.

A REFINANCE

There are only a few expenditures on a household’s budget that can make a sizable difference in available money when adjusted.

A mortgage is one.

And lowering the interest rate on a mortgage can free up a meaningful amount of cash, on a monthly basis, for the average household.

You do have to be aware of the fees and other charges associated with refinancing a mortgage to a lower interest rate, but as long as you work to keep those additional charges reasonable, a refinance oftentimes is a positive for a household’s bottom line.

I’m not going to get into the specifics of when to refinance and what to watch out for in this post.

Here is a link to a document by the Federal Reserve Board titled “A Consumer’s Guide to Mortgage Refinancings” if you’d like more details on refinancing specifics. I’d encourage everyone, even those who’ve refinanced before, to give it a look.

Rather, this post is just to alert readers to the fact that interest rates are at extremely low levels and now may be the time to consider taking advantage of these low rates to better your financial situation.

A FEW REFINANCING OPTIONS TO CONSIDER

Let me start by saying Savings Beagle does not endorse any of the following banks/refinancing options.

We do not have any relationship with any of these financial institutions, and have not personally utilized any of their services.

Our knowledge of these banks and specific deals are a result of research and we present them as options to consider only as part of your own refinancing research.

Refinancing a mortgage is one of the, if not THE, most significant financial transactions a consumer can make. Do the research and only act once all the financial factors are right for you.

One thing that may help with that research is a Refinance Mega Thread on Bogleheads.org (a forum dedicated to investing/financial discussions based on John Bogle’s – founder of the Vanguard investment company – simple, low-cost investment philosophies) that provides a lot of good information and first-hand experiences regarding the current refinancing landscape.

Here’s a link to the Refinancing Mega Thread starting with posts in early July 2020. It’s a lot of reading, but can be very educational and beneficial.

Below are a few of the financial institutions contributors have mentioned as they shop for the best refinancing opportunity.

Aggregators which will provide rates from a number of financial institutions.

• NerdWallet
• BankRate
• Mortgage Professor

And a few financial institutions to contact directly.

• LenderFi
• Loan Depot
• Northpointe Bank
• Better
• Of course, your local bank and/or credit union

Not all of these financial institutions do business in every U.S. state, so keep that in mind as you check each site and/or make an application.

Occasionally, a financial institution will provide an incentive to set up a loan with them. A promotion is definitely not a reason to go with one financial institution over another. But, as long as the financial terms are similar, the incentive may be enough to move the needle in that lender’s direction.

Currently, Better.com is offering a deal to American Express credit card holders that provides a $2,500 credit card statement credit with a home mortgage purchase or refinance with Better Mortgage. The promotion is for applications done by July 25, 2020, and closed by October 28, 2020. You also get a free appraisal with this promo.

You can see the Better Mortgage American / Express promo at the link below. Just be sure to scour the fine print before taking advantage.

Better Mortgage / American Express $2,500 Statement Credit Promotion

You can also read the experiences of others with this promo on the Refinancing Mega Thread.

WRAP UP

Mortgage interest rates are at levels we haven’t seen ever.

Making now the time to consider getting, or refinancing, a mortgage.

Of course, there are a number of factors that need to be considered before making such a significant financial move like this.

But with some research, careful planning and consideration of options, you may be able to save yourself significant money by taking advantage of today’s low interest rates.

If you need some guidance, use the links above as starting points, and branch off from there.

Making smart financial moves is one of the ways to build financial stability, and taking advantage of historically low interest rates can definitely be considered a smart move.